Landlords and property

We have dealt with a wide range of tax issues relating to property and can provide advice and guidance on a whole range of areas to do with taxation of property.

We act for a number of landlords and businesses involved with UK situated property. Property will often comprise a significant part of the wealth of a client or a company, and it is therefore essential that all tax aspects are considered carefully and fully.

We have dealt with a wide range of tax issues relating to property and can provide advice and guidance on a whole range of areas to do with taxation of property.

Accounting issues involving property clients can be complex. This is especially so in the case of long term contracts, where properties are being developed, and where revenue is recognised over a period of time.

Accounting for rental income and expenses on property is more straightforward, but there are many areas that require specialist consideration.

Groups of companies will often have one company in the group that is used for property ownership, and we can advise clients on the benefits around this and the options available to them.

Landlords and property rental businesses are required to file rental accounts for their businesses as part of the tax return completion cycle. The interpretation of the tax law is constantly changing as a result of rulings in tax cases, and due to changes in the tax laws each year in the finance bill.

We have specialised in the landlord and property sector for a number of years, and are therefore experienced in dealing with a range of tax issues for our landlords and property related business clients.

As well as providing compliance services in relation to the completion of accounts and tax returns, we can advise you on tax planning ideas in relation to land and property, in order to maximise your income whilst ensuring that you remain within the law.

We can assist with the drawing up of service charge accounts for landlords, and also with property management accounts for shared freehold properties.

For our commercial clients we can advise on the benefits and costs of making an "option to tax" election on your property, and advise what the implications will be of doing so.

We are specialists in dealing with UK taxation of property for overseas clients - especially our high net worth clients based in Dubai, other parts of the Middle East and Asia.

VAT is a key area when dealing with land transactions, because in many cases the VAT implications of the sale/purchase of the building will be crucial - and the values involved in VAT will be substantial. It is essential to ensure that VAT is treated correctly as an error here could give rise to substantial penalties, not to mention cash flow implications for the party involved.

We can advise on most VAT issues relating to clients within our specialist sectors, such as owner managed businesses, charities and engineering sector clients. If the VAT is in relation to a specialist area that we cannot assist with, then we usually know the right contact to help.

We are still amazed at the number of times that VAT is not even considered in a sale/purchase agreement until near signing off (and in some cases is never thought about at all during the transaction process). It is essential to get your accountant/tax adviser involved at a very early stage as VAT is a key tax area to consider for all transactions involving sale/purchase of assets and businesses.

We would be delighted to assist solicitors, other accountants or clients who require advice in relation to VAT.

Capital Gains Tax (CGT) is a key consideration upon the disposal of property. In many cases there will be reliefs available on the disposal of a property - and there will also be planning opportunities available. Capital gains tax is a very wide area, and there are a number of key considerations, and reliefs to consider.

In our practice, the issue of capital gains tax will arise on a regular basis, and we are delighted to advise in this complex area.

CGT is generally chargeable on UK resident persons (including those who are temporarily non resident) on gains made on the disposal of capital type assets. In practice the most common disposals will be of land and buildings, but the tax would equally apply to the sale of other assets such as paintings and works of art.

In relation to the disposal of property, it is possible to claim reliefs to minimise the amount of capital gains tax due - but it is important to note that not all of the reliefs will be available on each disposal. Some possible reliefs include:

compulsory purchase order rollover relief

only or main residence relief

lettings relief

We are happy to go through various scenarios to see what the potential capital gains tax amount may be, and to provide illustrations of potential tax liability - including ways of mitigating any capital gains tax.

It is worth noting that capital gains tax rates are lower than income tax rates - for a tax payer in the basic rate band of tax, the rate is 18% and in the higher rate band of tax it is 28%. Also, an annual exemption is available which allows a certain amount of the chargeable gain to be made "free of tax". For the tax year 2014/15 the annual exemption for individuals is £11,100.

We are happy to assist other professional persons (such as solicitors, IFA's, bookkeepers, accountants) with calculations of capital gains tax and to assist any clients requiring this important service.

We assist our landlord clients with a variety of tax planning services, including advice on the best way to hold their property investments, and on tax efficient ways to draw income from these investments. We do not promote any fancy schemes, nor do we work with any boutiques that provide tax avoidance schemes, but we are proud of our proactive nature and our desire to assist our clients in minimising their taxation affairs. We can advise on the benefits and costs of sharing assets with others, and whether any situations are likely to fall within the settlements code.

We can assist with any tax enquiries in relation to land and property matters.

We work with specialist property solicitors, and so can ensure that you are working with another professional who understands the transaction you are planning to undertake and who will ensure that all matters are considered. We are happy to recommend solicitors should you require advice in this area.

In terms of shareholder agreements and other more basic legal agreements, we are able to assist through our skilled "in house" team.